Holding Strong – Failed Price Breakdown a Boon for Bitcoin Bulls

Holding Strong – Failed Price Breakdown a Boon for Bitcoin Bulls

A drop below $8,000 during the Asian day was quickly undone and the world's largest cryptocurrency by market value once again approached record highs, hitting $8,333 this morning.

At press time, bitcoin is changing hands at $8,228, according to CoinDesk's Bitcoin Price Index.

As per CoinMarketCap, the bitcoin-U.S. dollar (BTC/USD) exchange rate has appreciated by 1.13 percent in the last 24 hours. Meanwhile, the total trading volume in the last 24 hours was $5 billion, the highest since Nov. 16.

The price action analysis indicates the failed breakdown below $8,000 may be costly for the bears.

4 hour Chart
The chart above shows:

Failed breakdown: BTC witnessed a solid rebound from the upward sloping 50-MA and is back in the rising channel.

The descending trend line seen on the chart above has been breached as well, suggesting there is scope for a rally.

View

The charts suggest a rally to new all-time highs around $8,600 (rising channel ceiling) is possible. The 10-day moving average (MA) is sloping upwards, suggesting dips below the same could be short-lived. Currently, the 10-day MA stands at $7,949 levels.

However, multiple 4-hour closes below $7,900 levels would warrant caution on the part of the bulls. In such a case, a deeper pullback to sub-$7,600 could be seen.